Director remunration

This query is : Resolved

CA SONI KRUNAL (Querist)
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30 April 2010 sir in section 194j it is clearly mentioned that as director is manager of company he is said to be a technical person so any payment to him is covered under 194j, but what about monthly slary paid to director?

as in one section of company's act it ismentioned that the director is not an employee of the company so he can not give resignation with immediate effect.so if he not an employee how we can give him a salary?

so in which section this tds is covered

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 April 2010 Payments to a director:
A director is also a manager under the provisions of the Companies Act, 1956. He is, therefore, technical personnel. Any payment made to such director (be it sitting fee or any other sum) shall be required to be taken into consideration for the purposes of deduction of tax at source under section 194J.

But Director's remuneration is nothing but Salary Income to the Director. All provisions affecting calculation of tax under the head 'Income from Salary' will apply.